A Rent Ceiling Results in a Shortage of Apartments

question 316

Multiple Choice

A rent ceiling results in a shortage of apartments. As a result, there is

• A) only a loss of consumer surplus for tenants.
• B) only a loss of producer surplus for landlords.
• C) a loss of both consumer and producer surplus.
• D) a gain of both consumer and producer surplus.

---

Definitions:

Single-Step Income Statement

A form of income statement in which the total of all expenses is deducted from the total of all revenues.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overheads, taxes, interest, and depreciation.

Income From Operations

Earnings generated from a company's regular business activities, excluding deductions of interest and tax.

Ending Inventory

Ending inventory refers to the total value of unsold goods that a company holds at the end of an accounting period.